REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Quezon City
May 8, 2003
REVENUE MEMORANDUM ORDER No. 15-2003
SUBJECT

Policies, Guidelines and Procedures in the Processing

and Monitoring of One-Time Transactions (ONETT) and
the Issuance of Certificates Authorizing Registration
(CARs) Covering Transactions Subject to Final Capital
Gains Tax on Sale of Real Properties Considered as
Capital Assets as well as Capital Gains Tax on the Net
Capital Gain on Sale, Transfer or Assignment of Stocks
Not Traded in the Stock Exchange(s), Expanded
Withholding Tax on Sale of Real Properties Considered
as Ordinary Assets, Donors Tax, Estate Tax and Other
Taxes including Documentary Stamp Tax Related to the
Sale/Transfer of Properties

TO
:
All Internal Revenue Officers and Others Concerned
_____________________________________________________________
___
I.

OBJECTIVES:
This Order is issued to:
1. Simplify documentary requirements and procedures in the
processing, verification/audit and review of tax returns on ONETT.
2. Ensure timely issuance of Certificates Authorizing Registration.
3. Ensure the imposition and collection of the correct tax(es).
4. Establish measures to monitor the processing, review and evaluation
of ONETT cases.
5. Provide sanctions to be imposed for non-compliance by revenue
personnel concerned.

II.

POLICIES:
In order to achieve the above objectives, the following policies shall
be observed:

1. ONETT shall cover transactions subject to Final Capital Gains Tax

(FCGT) on sale of real properties considered as capital assets as well
as Capital Gains Tax (CGT) on the Net Capital Gain on sale, transfer
or assignment of stocks not traded in the Stock Exchange(s),
Expanded Withholding Tax (EWT) on sale of real properties
considered as ordinary assets, Donors Tax (DN), Estate Tax (ES) and
other taxes related thereto including Documentary Stamp Tax (DST).
2. An ONETT Team composed of Revenue Officers (ROs) and support
staff shall be created in every Revenue District Office to serve as a
One Stop-Shop for ONETT. As such, it shall provide frontline services
and attend to all the needs of the ONETT taxpayers, from assistance
to issuance of tax clearance, which necessitates that it holds office
within/adjacent to the Taxpayer Service Section (TSS). The ONETT
Team shall be under the direct supervision of the Revenue District
Officer (RDO) as the Head, ONETT Team unless he delegates in
writing the authority to the Assistant Revenue District Officer (ARDO),
copy furnished the Regional Director. The Head ONETT Team shall
ensure adherence to the policies and procedures herein prescribed.
The ONETT Team members shall be assigned for a period of one (1)
month only without the need of turning over their pending inventory of
dockets by virtue of a Revenue District Special Assignment Order
(RDSAO) which shall be issued by the RDO, copy furnished the
Regional Director. The RDSAO shall be deemed automatically
extended until the issuance of another order. The running of the audit
period (i.e. 120-day for cases covered with Letter of Authority) to
terminate the audit shall be suspended while he/she is assigned as
member of the ONETT Team. However, the RDO shall see to it that
the ROs assigned to the ONETT Team have no prescribing cases so
as not to unduly delay the submission of the necessary investigation
reports.
3. A Data Verifier (DV) shall be assigned by the Regional Director in
every Register of Deeds (RD), subject to change or revocation by the
Deputy Commissioner for Operations, to verify the authenticity/validity
of all Certificates Authorizing Registration (CARs) and other documents
presented to the RD. The DV shall likewise monitor and reconcile
CARs and TCLs issued by the Revenue District Offices against CARs
and TCLs presented to the Register of Deeds. Rotation of assignment
of DV shall be done at least on a monthly or quarterly basis. Reports
submitted by the DV shall be forwarded to the RDO, copy furnished the
Regional Director. Each district shall have a DV in every RD.

In case of absence of the duly designated DV, the RDO may designate
a temporary successor until such time that the Regional Director
designates a permanent one.
4. A Regional ONETT Committee (ROC) headed by the Regional Director
with the Chief, Assessment Division, and the Chief, Legal Division as
members, shall resolve all ONETT issues raised and decide on the
recommendation regarding any deviation from the procedures
prescribed in this RMO including reasons peculiar to offices within the
Region.
5. A Regional ONETT Working Committee (ROWC) composed of ROs
from different district offices and representatives from the Assessment
and Legal Divisions shall be created by the Regional Director through
the issuance of a Regional Revenue Special Order (RRSO). The
ROWC shall assist the ROC in the investigation and gathering of
additional information on cases involving ONETT. It shall summarize
all issues for resolution of the ROC. It shall also monitor compliance of
interested parties with the requirement of putting up Escrow Agreement
- Sale of Principal Residence (RMC No. 14 2001 and other related
issuances), and refer non-compliance after the lapse of the eighteenmonth period to the Revenue District Office concerned to initiate
assessment of deficiency CGT, and thereafter, apply the escrowed
bank deposit account against deficiency tax pursuant to RMC No. 452002 and other related issuances.
6. The Schedule of Zonal Values of properties within the jurisdiction of
the Revenue District Office shall be displayed in a conspicuous place
within the district office and all other Zonal Value/s shall be made
available upon request of the taxpayer.
7. The counting of the processing period for ONETT shall commence only
upon receipt of complete documentary requirements and payment of
tax, if any. The next working day shall be counted as Day One.
8. Standard Checklist of Documentary Requirements (Annexes A to A-8)
for each ONETT transaction shall be accomplished in duplicate by the
ONETT Officer and shall be distributed as follows:
Original copy
Duplicate copy

Taxpayer
Docket

9. The TIN required for ONETT shall be as follows:

a.
b.
c.
d.
e.

TYPE OF TAX
Final Capital Gains Tax
Capital Gains Tax on Stocks
Expanded Withholding Tax
Donors Tax
Documentary Stamp Tax

f. Estate Tax

REQUIRED TIN
Buyer & Seller
Seller/s or Assignor/s
Buyer & Seller
All the Donors
Any one party required
to pay the tax
Estate of the Decedent

10. In case of a resident decedent, the duly appointed administrator by the

Court or executor, if there is a court proceeding, or any of the
compulsory heirs, if there is no court proceeding, shall register the
estate of the decedent and secure a new TIN for the estate from the
Revenue District Office where the decedent was domiciled at the time
of death and shall file an estate tax return and pay the tax due thereon
with the Authorized Agent Bank (AAB), Revenue Collection Officer
(RCO) or Deputized Municipal Treasurer (DMT) in the city or
municipality in the Revenue District Office where the decedent was
domiciled at the time of death pursuant to Section 236 in relation to
Section 90 of the Tax Code.
In case of non-resident decedent, whether non-resident citizen or nonresident alien, the estate tax return shall be filed with and the TIN for
estate shall be secured from the Office of the Commissioner through
RDO No. 39 South Quezon City. However, where the non-resident
decedent has an executor or an administrator who is registered or has
legal residence in another district office, the estate tax return may be
filed with and the TIN for the estate shall be secured from the Revenue
District Office where such executor or administrator is registered, or is
domiciled, if not yet registered as a taxpayer.
11. Issuance of Tax Verification Notice or Letters of Authority (TVN/LA) for
ONETT shall no longer be required except for estate tax case with
other tax liabilities of the decedent to determine the other internal
revenue tax liabilities that should be paid by the estate before
distribution of the properties to the heir/s. The investigation of other
tax liabilities of the decedent shall cover the short period return and
that of the immediately preceding year, unless otherwise provided in a
separate revenue issuance.

12. ONETT Computation Sheet/s (Annexes B to B-4) shall be

prepared/accomplished in duplicate by the ONETT Officers upon
receipt of complete documentary requirements and to be approved by
the Head, ONETT Team. It shall be distributed as follows:
Original copy
Duplicate copy

Docket
Taxpayer

13. Claim Slip (Annex C) shall be issued to the taxpayer or any of his/her
authorized representative immediately upon receipt of complete
documentary requirements and proof of tax payments, if applicable.
14. Conduct of ocular inspection shall be required under the following
instances:
14.1

When there is conflict of data as to existence of improvement in

documents presented; and

14.2

Whenever the taxpayer invokes a special law (such as

properties located in Areas for Priority Development) that will
result in payment of a lesser tax.

In all cases, the ocular inspection hereinabove mentioned shall be

done within the processing period; thus, should not be the cause of the
delay in the issuance of CAR as prescribed in this RMO.
It is to be stressed out, however, that the ROC may decide later for a
conduct of ocular inspection on a selective basis for properties not
covered by the requirement of mandatory ocular inspection.
15. In case there is no improvement, a Sworn Declaration of No
Improvement on Real Property (Annex D) or an Affidavit of No
Improvement on Real Property shall be executed by at least one (1) of
the transferees or his/her authorized representative/s to the
transaction, or in lieu thereof, a Certificate of No Improvement duly
signed by the Assessor may be submitted. However, the veracity of
the allegation may be validated on a sampling basis by the ROWC.
16. The taxpayer or his authorized representative shall file the return/s and
pay the corresponding tax/es only with the AAB of the city or
municipality where the district office is located. However, where there
are no AABs,

payment shall be done with the RCO/DMT in the city or municipality

where the district office is located.
17. The collection/payment data should be verified thru the facility of
Integrated Tax System (ITS), Batch Control Sheet (BCS) verification
and/or any other means of confirming tax payments within the five (5)
day processing period before the issuance of CAR.
18. All pages of original copies of documents of transfer
(Sale/Assignment/Donation/Succession) presented to the BIR and
required to be presented to the Register of Deeds shall be stamped at
the back of all information required by Sec. 4 of RR No. 24 2002
dated November 15, 2002.
19. As a general rule, CARs shall be issued for all ONETT within five (5)
days from date of receipt of tax returns with complete documentary
requirements. However, for Estate Tax with other related tax liabilities,
CARs shall be issued depending on case classification of the otherrelated tax liabilities as presented/provided herein-below and after
payment of agreed tax liabilities:
Case
Classification
Small
Medium
Large
Very Large

Gross Sales/ Receipts

Not more than P5,000,000.00

P5,000,000.01 P50,000,000.00
P50,000,000.01 P100,000,000.00
Over P100,000,000.00

CAR must
be issued
within
30 days
60 days
90 days
120 days

20. The RDO, being the Head of the ONETT Team, shall sign/approve
CAR and Tax Clearance (TCL) for computerized districts. In his
absence, the ARDO may sign the CAR and TCL. However, if the
ARDO is designated as the Head, ONETT Team, the RDO shall sign in
his absence.
21. One (1) CAR per RD shall be issued for real property/ies covered by
the transfer. The last item in the CAR shall be followed by the phrase
x x x NOTHING FOLLOWS x x x.
22. CARs for Estate and Donors tax cases shall cover all properties of the
decedent/donor wherever situated and shall be issued by the Revenue
District Office where the ONETT case is processed. There will be as
many CARs as there are RDs involved in the estate tax case or
donors

tax case. The use of Confirmation Letter as a basis for issuance of

CAR by the Revenue District Office where the property is located is
hereby discontinued.
23. CAR/s issued by the district office other than the district office where
the property is located shall be authenticated by the RDO/Head,
ONETT Team having physical jurisdiction over the property/ies
considering that it is his/her signature that is known to the local RD/s.
The authentication shall be based only on the faxed/photocopied
CAR/s and TCLs sent by the processing district office or through the
taxpayer or his authorized representative, subject to validation by the
authenticating RDO with the processing district office, if the former so
desires.
24. CARs shall now have a validity of one (1) year from date of issue. In
case of failure to present the same to the RD within the one (1) year
period, the same shall be presented for revalidation to the district office
where the CAR was issued following the procedures herein prescribed.
The revalidation, evidenced by stamping the phrase revalidated on
_____________ to expire on _____________ in a conspicuous space
in the CAR, shall be good for another one-year period, after which the
CAR losses its validity.
25. The P15.00 Documentary Stamp Tax on Certificates (Section 188 of
the NIRC of 1997) and the prescribed Certification Fee of One
Hundred Pesos (P100.00) under Executive Order No. 197 shall be
collected for each CAR to be issued. These tax and fees collected are
over and above the taxes due on the transactions.
26. Mandatory review shall be conducted by the Assessment Division on
the following cases:
a. Estate Tax
b. Donors Tax
c. Capital Gains Tax on sale of stocks not traded in the Stocks
Exchange
d. Other ONETT transactions involving tax payments of at least
P1M per case
e. Transactions exempted from FCGT/EWT (e.g. principal
residence, community mortgage program (CMP), socialized
housing, tax-free exchange under Section 40 (c)(2) of the NIRC
of 1997.

27. For transactions with tax payments of less than One Million
(P1,000,000) per case, selective review shall be conducted by the
Assessment Division based on the selection criteria to be specified in a
separate RMO for audit of tax returns or if there is none, the selection
shall be done by the Assessment Division Chief, which is at least 10%
of the dockets submitted on the following cases:
a. real property transactions subject to FCGT; and
b. sale of real properties considered as ordinary assets subject to
EWT;
28. The Revenue District Office shall forward the entire dockets of ONETT
th
cases in batches with issued CARs arranged sequentially every 15
th
and 30 day of the month to the Assessment Division using the
Transmittal List of ONETT Dockets (Annex E). The serial numbers of
all cancelled and lost CARs shall likewise be included in the
Transmittal List.
29. Any deviation from the provisions of this RMO due to reasons peculiar
to a district office shall require prior approval of the Deputy
Commissioner - Operations Group upon recommendation by the ROC.
30. The ONETT taxpayers may choose to file the return and pay the tax
first with the appropriate BIR collection agent before asking for
assistance from the BIR or may opt to ask assistance first before filing
the return. Nonetheless, the required procedures in the issuance of
the CARs shall in all instances be followed.
III.

GUIDELINES AND PROCEDURES:

A. The Revenue District Officer shall:

1. Create the ONETT Team through the issuance of RDSAO, copy
furnished the Regional Director;
2. Submit to the Security Management Division-Information Planning
Quality Service (IPQS) list of ONETT Team members for issuance of
necessary access;
3. Cause the verification and post-audit of ONETT transactions under the
CMP, after issuance of the CAR but before transmittal of the docket to
the Region, to determine that the actual occupants of the properties
transferred are qualified beneficiaries and therefore, the sellers are

entitled to exemption from the capital gains tax or income tax or

expanded withholding tax or donors tax, whichever is applicable;
4. Approve Transmittal List of ONETT Dockets (Annex E) and forward the
same together with the entire dockets in batches with issued CARs
th
th
arranged sequentially to the Assessment Division every 15 and 30
day of the month. The Transmittal List shall likewise include the serial
numbers of all cancelled and lost CARs;
5. Prepare and submit Monthly Report of ONETT Collection (Annex M)
th
on or before the 10 day of the succeeding month to the Regional
Director and Assessment Service; and
6. Submit specimen signature to the DV in addition to the specimen
signature submitted to the RD, as previously required.
B. The Head, ONETT Team shall:
1. Approve recommendation of ONETT Officer for issuance of LA on the
other tax liabilities of the decedent;
2. Review and approve CDR and ONETT Computation Sheet (OCS)
(Annex B B4). Forward the same to the ONETT Officer to assist the
taxpayer or his representative in filling up tax forms;
3. Approve the report of investigation (BIR Form 0500 Series) on other
related tax liabilities of the decedent;
4. Approve the recommendation of the ONETT Officer for the conduct of
ocular inspection when there is conflict of data as to existence of
improvement in documents presented or whenever the taxpayer
invokes a special law that will result in payment of a lesser tax and
ensure that it shall not cause delay in the issuance of CAR and TCL as
prescribed in this RMO;
5. Approve and sign CAR and TCL;
6. All pages of original copies of documents of transfer
(Sale/Assignment/Donation/Succession) presented to the BIR and
required to be presented to the Register of Deeds shall be stamped at
the back of all information required under Sec. 4 of RR No. 24 2002
dated November 15, 2002.

7. Submit Monthly Report of CARs Issued (Annex K) to the Regional

th
Director on or before the 10 day of the following month, copy
furnished Assessment Service;
8. Ensure display and implement the ONETT Process Flowchart (Annex L
and L-1);
9. Ensure display of schedule of values (zonal value) of real properties
within the jurisdiction of the RDO in a conspicuous place for taxpayers
information and all other Zonal Values shall be made available upon
request of the taxpayer;
10. Monitor daily transactions recorded in the ONETT Record Book (Annex
G) and ensure that CAR is issued within the prescribed time;
11. Validate the authenticity of the faxed/photocopied CARs and TCLs
sent by the processing district office or through the taxpayer or his
authorized representative covering the real properties located within
the jurisdiction of his/her district office;
12. Authenticate the CARs and TCLs issued by the other RDOs/Head
ONETT Team/s for real properties located within the jurisdiction of his
district office considering it is his signature that is known to the local
RD/s;
13. Furnish daily the DV photocopies of all CARs and TCLs issued by the
district office including those issued by other district offices received
through fax, covering properties located within the jurisdiction of the
district office, covered by a transmittal list enumerating the CARs
covered by such list;
14. Send through fax, copy furnished Information Systems and Operations
Service (ISOS), CARs and TCLs issued covering properties outside of
the jurisdictional area of the RDO to the concerned RDO where the
property is located before release of CARs and TCLs to the taxpayer.
A copy of the List of CARs Issued being submitted to the Assessment
Service under RMO No. 66-99 shall also be furnished to the ISOS;
15. Approve and sign revalidation of CARs by signing the CARs presented
for revalidation upon verification of office records based on districts
copy/ies of CARs issued;

10

16. Forward to the ROC through the Regional Director all unresolved
ONETT issues for resolution;
17. Act on any adverse findings within 24 hours from the discovery thereof;
and
18. Submit specimen signature to the DV in addition to the specimen
signature submitted to the RD.
C. The ONETT Team shall:
1. Check documents presented by taxpayer and accomplish Checklist of
Documentary Requirements (CDR) (Annex A A-8) in duplicate,
whether documents presented are complete or incomplete. Clarify to
the taxpayer or his/her representative the specific requirements to be
submitted in relation to the ONETT transaction. Verify and validate the
photocopies from the original copies by stamping VERIFIED FROM
THE ORIGINAL and affix initial thereon;
2. Release original copy of the sequentially numbered CDR to the
taxpayer together with the attached documents, if documents
submitted are incomplete. On the other hand, if the documents
submitted are complete, only original CDR shall be released to the
taxpayer;
3. Record in the CDR Logbook (Annex F) the following information based
on the sequentially numbered CDR signed by the ONETT Officer,
whether documents are complete or incomplete:
a. Date
b. CDR No.
c. Name of Transferor and Transferee
d. Tax Type
e. C/I (Complete/Incomplete)
f. Assisted by;
4. File duplicate copies of CDR with incomplete documents and attach to
specific docket upon presentation of complete documents by the
taxpayer;
5. Recommend issuance of LA/AN for approval by Head ONETT Team if
the estate has other related tax liabilities;
6. Recommend conduct of ocular inspection when there is conflict of data
as to existence of improvement in documents presented by the
taxpayer or

11

his authorized representative or whenever the taxpayer invokes a

special law that will result in payment of a lesser tax;
7. Conduct ocular inspection, in instances when inspection is mandatory,
within the processing period prior to the approval of the CAR by the
Head, ONETT Team;
8. Compute the tax due using the prescribed OCS and submit together
with the CDR and documentary attachments to the Head, ONETT
Team for review and approval;
9. Release duplicate copy of the approved OCS to the taxpayer;
10. Verify TIN or coordinate with TSS to validate the TIN furnished by
ONETT taxpayer or his representative. Stamp TIN Verified on the
OCS if found to be in place/correct. If taxpayer has no TIN, assist the
taxpayer or his representative in requesting for the issuance of a new
TIN from the TSS;
11. Assist the taxpayer or his representative in filling up required returns
and instruct him to file the return and pay the tax/es to the
AAB/RCO/DMT, as the case may be, within the city or municipality
where the district office is located;
12. Receive from the taxpayer photocopies of the validated returns and
official receipts/deposit slip issued by the AAB/RCO/DMT within the
city or municipality where the district office is located. Check and verify
photocopy/ies from the taxpayers copy/ies;
13. Receive no payment/exempt returns from the taxpayer. Prepare
BCS-B and forward the same together with the returns to the
Collection Section of the district for further processing;
14. Stamp RECEIVED COMPLETE DOCUMENTS on the lower right side
of the return/s and affix initial thereto with the corresponding date of
receipt. Prepare Claim Slip (CS) and record in the ONETT Record
Book (Annex G). Sequential control number shall be assigned to the
CS as follows:
xx-xxxx-xxxx
First two (2) digits : RDO Number
Next four (4) digits : First two (2) = Month
Next two (2) = Year
Next four (4) digits : Sequential Control Number

12

Example:

RDO 39 South QC issued for July 2002 its first

Claim Slip (CS) as follows:
39-0702-0001

15. Issue sequentially numbered CS to the taxpayer and instruct the

taxpayer to present said stub in claiming the CAR and TCL;
16. Verify collection data thru the facility of ITS, BCS verification, or any
other means of confirming tax payments, before issuance of the CAR
and report immediately to the Head, ONETT Team for appropriate
action, in case collection data is not reflected in the ITS/BCS;
17. Verify the serial number of the ROR from the list provided by the
Administrative Section and ascertain that it is among the Revenue
Official Receipt/s (RORs) requisitioned by the particular issuing
RCO/DMT if payment was made through the RCO/DMT where an
ROR is issued;
18. Serve LA to taxpayer, conduct actual audit/verification on the estate
tax with other related tax liabilities of the decedent in accordance with
existing audit procedures.
Prepare report of investigation, and
accomplish Form 500 Series for review and approval of the Head,
ONETT Team;
19. Generate TCL2 and indicate the Outbound Correspondence Number
(OCN) on appropriate CAR for computerized districts;
20. Prepare CAR for signature and approval of the Head, ONETT Team.
One (1) CAR per Register of Deeds shall be issued for real
property/ies applied for transfer;
21. Indicate on the middle portion of the CAR its validity which shall be one
(1) year from date of issue;
22. Stamp REVALIDATED AND VALID UNTIL ___(date)____ on the
CAR which was not presented to the RD within one (1) year from date
of issue after verifying authenticity against existing records of the
Office to be signed by the Head, ONETT Team. The revalidation shall
be good for another year making the maximum life of the CAR to two
(2) years after which the CAR losses its validity or the validity of the
CAR expires;
23. All pages of original copies of documents of transfer
(Sale/Assignment/Donation/Succession) presented to the BIR and
required to be presented to the Register of Deeds shall be stamped at
the

13

back of all information required by Sec. 4 of RR No. 242002 dated

November 15, 2002;
24. Release approved CAR/s, TCL/s and other related documents after
affixture of P15.00 Documentary Stamp Tax on Certificates (Section
188 of the NIRC of 1997) and the prescribed Certification Fee of One
Hundred Pesos (P100.00) (Executive Order No. 197) to the
taxpayer/authorized representative upon presentation of the CS;
25. Record the completed transaction in the CAR Registry Book (Annex
H);
26. Attach to the specific ONETT docket the duplicate copy/ies of the
return/s; and
27. Prepare transmittal list of dockets per tax type for approval of the RDO
and forward dockets together with the approved transmittal list to the
th
th
Assessment Division every 15 and 30 day of the month.
D. The Data Verifier shall:
1. Verify correctness of contents of CARs, TCLs and other documents of
transfer presented by taxpayers to the RD against the photocopies of
CARs and TCLs furnished by the Head, ONETT Team;
2. Verify if all back pages of original copies of documents of transfer
(Sale/Assignment/Donation/Succession) presented to the BIR and
required to be presented to the RD, were properly stamped and signed
by the Head, ONETT Team;
3. Check validity period of CAR presented to the RD, and advise the
taxpayer or his representative to present the CAR to the district office
where the CAR was issued for revalidation, if found to be beyond the
one-year validity period from date of issue;
4. Stamp the CAR with CAR Verified at the right side of the seal and
affix signature and date;
5. Record on the CAR Verification Logbook
CARs/documents presented for verification;

(Annex

I)

all

14

6. Report immediately any adverse findings on CARs and other

documents verified to the Head, ONETT Team, copy furnished the
Regional Director and the Deputy Commissioner Operations Group;
7. Photocopy all spurious/fake documents/CARs presented by the
taxpayer and transmit the same to the Head, ONETT Team for
immediate appropriate action, copy furnished the Regional Director
and the Deputy Commissioner Operations Group;
8. Monitor and reconcile CARs and TCLs issued by the district office
against CARs and TCLs presented to the RD; and
9. Submit a weekly report to the Head, ONETT Team using the Weekly
Report of CAR Verification (Annex J) of all documents/CARs verified,
copy furnished the Regional Director and the Deputy Commissioner
Operations Group.
E. The Taxpayer Service Section (TSS) shall:
1. Validate existing TIN of ONETT Taxpayer in the ITS Website or
Masterlist of Registered Taxpayers;
2. Validate TIN using any of the following:
a. duly notarized deed of sale/deed of donation/extra-judicial
settlement or affidavit of self-adjudication/notarized listing of
properties of decedent or other notarized deed of
transfer/assignment
b. any documentary evidence, whether original or duly certified
true copy, showing name, address and birthdate(s) of the
person concerned.
3. Receive accomplished BIR Form No. 1904 and other documents from
the ONETT taxpayer or his representative if taxpayer has no TIN yet;
and
4. Issue TIN for taxpayer with no TIN yet, based on
received/accomplished BIR Form No. 1904, as the case may be, using
any of the following:
a. duly notarized deed of sale/deed of donation/extra-judicial
settlement or affidavit of self-adjudication/notarized listing of
properties of decedent or other notarized deed of
transfer/assignment

15

b. any documentary evidence, whether original or duly certified

true copy, showing name, address and birthdate(s) of the
person concerned.
F. The Document Processing Section (DPS) shall:
1. Receive copy of ONETT returns from the Collection Section;
2. Prioritize assignment of Document Locator Number (DLN) to ONETT
returns;
3. Transmit duplicate copy of the return with DLN to the ONETT Team;
and
4. Encode original copy of ONETT returns following existing guidelines
and procedures relative to document processing of returns.
G. The Collection Section shall:
1. Process BCS-B together with the exempt/no payment returns and
forward the same to DPS;
2. Process retrieved BCS-A together with the returns from
AAB/RCO/DMT and forward the same to DPS for further processing;
3. Assist ONETT Team in the verification of collection data, confirm within
three (3) days from date of payment the collection data for tax payment
made to the RCO/DMT in case such data is not available in ITS prior to
issuance of the CAR;
4. Verify payments made thru RCO/DMT against BIR Monthly Collection
Report (Form 1231) after the issuance of the CAR.
Report
immediately to the Head ONETT Team any findings on said
verification; and
5. Follow existing procedures in the processing of returns.
H. The Administrative Section shall:
1. Ensure availability of all ONETT Forms, supplies, unused CARs and
updated Schedule of Zonal Values; and
2. Provide ONETT Team the serial numbers of RORs issued to all
RCO/DMT of the district office.

16

I. The Assessment Division shall:

1. Conduct mandatory and selective review of ONETT cases submitted
by processing district office;
2. Review and evaluate ONETT dockets received from the district offices
by accomplishing OCS for approval of the Regional Director;
3. Inform taxpayers of their tax payments thru ONETT Confirmation Letter
(Annex N) and attach ONETT Survey Form Sheet (Annex O) to
evaluate the performance of the Revenue District Office;
4. Forward all dockets without findings to the Regional Director for
approval;
5. Recommend the investigation of the taxpayer and/or the revenue
personnel in case of any findings and/or deviation noted during review,
and forward the same to the ROC for appropriate action;
6. Prepare Preliminary Assessment Notice (PAN)/Final Assessment
Notice (FAN) for review and signature of the Regional Director, in case
of deficiency tax noted during review;
7. Forward, together with PAN/FAN, entire docket for the signature of the
Regional Director;
8. Act on protest letters of taxpayers regarding assessments on ONETT.
However, if field work is necessary in order to resolve the protest, the
case shall be referred to the ROWC through the ROC. On the other
hand, if there are legal issues raised, the case shall be referred to the
Legal Division for appropriate action;
9. Prepare Termination Letter on reviewed dockets without findings
issued with LA/AN for approval of the Regional Director; and
10. Prepare transmittal list of dockets for cases not selected for review as
well as the reviewed cases and forward the same to Administrative
Division for safekeeping.
J. The Administrative Division shall:
1. Request from the Accountable Forms Division thru the Regional
Director sequentially numbered CARs for use by the revenue district
offices and

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ensure availability of ONETT Forms and supplies for use by the

ONETT Teams;
2. Safekeep docket of cases with issued CARs received from
Assessment Division;
3. Mail approved Termination Letter to the concerned taxpayer; and
4. Mail duly signed Preliminary
Assessment Notice (FAN).

Assessment

Notice

(PAN)/Final

K. The Regional ONETT Committee (ROC) shall:

1. Act on issues raised by the Revenue District Office, Assessment
Division, and others concerned;
2. Decide and act on the recommendation of the Assessment Division
regarding the investigation of the taxpayer and/or the revenue
personnel in case of any findings and/or deviation noted during review;
3. Refer
to
the
ROWC
dockets
that
verification/investigation of ONETT taxpayer;

warrant

further

4. Refer to the Assistant Commissioner, Inspection Service, any

unauthorized deviation committed by the revenue personnel for
appropriate action; and
5. Act on all other matters regarding ONETT.
L. The Regional Director shall:
1. Issue a RRSO creating the Regional ONETT Working Committee
(ROWC) which is composed of Revenue Officers from the different
district offices and representatives from the Assessment and Legal
Divisions of the region. The Committee shall assist the ROC in the
investigation and gathering of additional information on cases involving
ONETT. It shall also monitor compliance of transferors/sellers of
Principal Residence with all the pertinent issuances applicable to such
type of transaction;
2. Approve dockets without findings recommended by the Assessment
Division and forward the same to the Administrative Division for
safekeeping;

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3. Approve Termination Letter on dockets issued with LA and forward the

same to the Administrative Division for mailing to the concerned
taxpayer, copy furnished the Assessment Division;
4. Approve PAN and FAN;
5. Order investigation on any reported misstatement, misdeclaration or
any similar commission/omission to determine the correct tax due
and/or the existence of fraud;
6. Strictly monitor compliance with all revenue issuances pertinent to Sale
of Principal Residence; and
7. Submit to the National Office on or before the prescribed due dates the
consolidated periodic reports pertaining to transactions or cases
covered by this RMO and those required by relevant RMO already
issued.
8. Assign DV in each Register of Deeds.
M. The Regional ONETT Working Committee shall:
1. Assist the ROC in the investigation and gathering of additional
information on cases involving ONETT;
2. Verify the veracity of the Sworn Declaration of No Improvement
executed by one of the transferees or his authorized representative;
3. Summarize all issues for resolution of the ROC; and
4. Monitor compliance with issuances pertinent to Sale of Principal
Residence and refer non-compliance to the concerned Head ONETT
Team.
N. The Revenue Data Center shall:
1. Submit to the Regional Director/RDO on or before the prescribed due
dates the periodic reports pertaining to transactions or cases covered
by this RMO and required by relevant procedures and issuances; and
2. Act immediately on technical issues or problems affecting ONETT
processing and TCL issuance.

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O. The Information Planning and Quality Service shall:

1. Provide the necessary access to ONETT Team members per list
submitted by the RDO to the Security Management Division; and
2. Maintain the necessary database on transfer of properties covered in
this RMO specially CARs issued covering properties outside the
jurisdiction of the processing RDO using BIR-LRA Tax Verification
System and submit required reports to concerned offices.
IV.

SANCTIONS:
Any unauthorized deviation from the foregoing policies and
instructions and/or violation of any provision of this Order will result in
the imposition of disciplinary action to the concerned revenue officers
and officials and shall be referred by the concerned Regional Director
thru the ACIR, Assessment Service, to the Inspection Service or any
other Service/Office which has supervision over all the regional offices
for appropriate investigation. In this regard, the relief, reassignment, or
transfer of any revenue official violating any of the provisions and
instructions prescribed in this Order may be recommended to the
Commissioner of Internal Revenue.

V.

TRANSITORY PROVISIONS:
1. All ONETT transactions shall be processed by the ONETT Team
until such time that a permanent ONETT Section is created in the
district office.
2. All pending ONETT cases at the Revenue District Offices shall be
processed in accordance with the provisions of this RMO.
Prescribed audit reports (BIR Form 0500 Series) shall still be
required for ONETT cases covered by TVN/LA and shall be
processed in accordance with this RMO.
3. All pending ONETT cases in the Assessment Division for which
CAR/CL has not been issued shall be processed following the
existing procedures prior to the implementation of this RMO. All
pending ONETT cases at other BIR Offices, e.g. Legal Division,
Assessment Service and Legal Service shall be treated as cases
with incomplete requirements; hence, the prescribed period for the
issuance of CAR

20

under this RMO shall apply upon submission of the complete

documentary requirements at the Revenue District Office.
4. The existing forms shall be used if the CAR specifically prescribed
for ONETT is not yet available, The Revenue District Office shall
assign sequentially numbered CARs that shall be used for ONETT
and shall be reported accordingly.
5. For purposes of revalidation, all CARs issued prior to this RMO
shall be valid only up to such period as prescribed in Revenue
Regulations No. 24-2002.
In case of failure to present the CAR to the Register of Deeds
within the one-year validity period, the same may still be
revalidated, but the total period of validity can not exceed two years
counted from the date of issuance of the CAR.
VI.

REPEALING CLAUSE:
The provisions of RMO No. 53-98, RMO No. 66-99 and other
existing issuances inconsistent herewith are hereby repealed,
amended or modified.

VII.

EFFECTIVITY:

This Order shall take effect immediately and the new procedures shall
be implemented nationwide starting June 1, 2003.

(Original Signed)
GUILLERMO L. PARAYNO, JR.
Commissioner of Internal Revenue

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